SA’s independent hotels start 2025 with a strong revenue boost

Cape Town, South Africa. 10 February 2025 – Independent hotels in South Africa are starting the year on a high note, according to RoomRaccoon, a leading hotel management software used by independent properties nationwide. 

Analysing the booking performance of over 4,500 rooms in hotels, guesthouses, B&Bs, and other independent properties in South Africa, RoomRaccoon revealed that revenue per available room (RevPAR) in January 2025 climbed 8% year-on-year, rising from R1,477 in 2024 to R1,593 in 2025.

This growth is fueled by a surge in the average daily rate (ADR), which soared to an average of R2,864—an impressive 16% jump from the previous year. The peak ADR reached R3,480 on 2 January 2025.

Guests are booking longer stays

RoomRaccoon also observed a shift toward longer stays in South Africa. While 57% of guests booked a single-night stay (-3% from the previous year), longer stays saw an uptick: 20% booked for two nights, 10% for three nights (+1%), 5% for four nights (+1%), and 7% opted for five or more nights (+1%).

“We’re seeing the post-pandemic travel boom is beginning to stabilise, with occupancy rates dropping slightly from 60% in January 2024 to 56% in January 2025. However guests are staying longer, which increases the opportunity to generate more revenue from other areas of the property,” says Niels Verspui, Market Head of RoomRaccoon South Africa.

Ancillary revenue is on the rise

RoomRaccoon’s data shows that hotels generated an additional R99.5M in January 2025 from add-ons like airport shuttles, guided tours, game drives, and special packages—up from R73.7M in January 2024.

“By selling add-ons through the website booking engine and online check-in, hotels are unlocking new ways to increase earnings beyond room bookings,” says Niels. “A key hospitality trend we’re seeing in 2025 is that hoteliers are becoming more strategic in monetising all aspects of their property. With RoomRaccoon’s Grey Rooms feature, our users sell alternative spaces like secure parking and extended pool access after check-out as add-ons.”

By tapping into underutilised spaces and services, independent hoteliers can create new income streams while offering guests greater convenience and flexibility during their stay.

About RoomRaccoon

RoomRaccoon is an award-winning Hotel Management System trusted by thousands of independent properties across the globe. RoomRaccoon’s cloud-based platform empowers hoteliers with a category-redefining, comprehensive range of products and solutions to increase revenue, streamline operations, and enhance the guest experience. And with over 400 integrations, RoomRaccoon is one of the most connected solutions on the market. Founded in 2017 by a hotel owner and tech entrepreneur, RoomRaccoon was shortlisted as the Best Hotel Management System in 2025 by Hotel Tech Report.

Press release issued by:

Lindsay Krause, Senior Brand Manager, RoomRaccoon

[email protected]